Floor Price

Floor price in Global Commerce Policy

In this regard, floor price is: a guaranteed price level for commodity producers. The entries on trade policy are here. It may be higher or lower than the world market price for that commodity. The entries on trade policy are here. In international commodity agreements the floor price may be the level at which the buffer stock manager must buy in an effort to reduce supply to the market and in this way support the price. See also Common Agricultural Policy, loan rate and trigger price mechanism.[1]

Floor pricein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Floor price” entry (OAS)

See Also